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Two major pieces of legislation have passed in the past two years that affect Colorado residents positively where energy is concerned. One is the national Energy Policy Act of 2005 and the other is Colorado’s Amendment 37, which is known as the Renewable Energy Requirement to many. We will cover the basics of each here so that you know how each will affect you.
Energy Policy Act of 2005
This Act provides tax incentives and loan guarantees for energy production of various types. There are many provisions included in the Act, just a few of them are:
- Provides a tax credit of up to $3,400 for owners of hybrid vehicles
- Authorizes subsidies for wind energy and other alternative energy producers
- Allocates $50 million annually for a biomass grant program
- Contains several provisions aimed at making geothermal energy more competitive with fossil fuels
- Requires that the Dept of Energy study and report on existing natural energy resources including wind, solar, waves and tides
- Provides tax breaks for those making energy conservation improvements to their homes
All of this means that as a consumer you can receive:
- A credit of up to 30% of the cost (up to $2000) for installing solar-powered hot water systems
- Tax credits up to $500 on the amount they spend to upgrade thermostats, to caulk leaks or to stop energy waste
- Up to $200 credit for installation of new exterior windows
- Up to $300 credit for purchases of a highly efficient central air conditioner, heat pump or water heater
- Up to $150 for installation of a highly efficient furnace or boiler
- Credits for cars and light trucks that are more fuel efficient than 2002 models
To learn more about the Energy Policy Act of 2005 click here.
Amendment 37- Renewable Energy Requirement
The initiative requires Colorado utilities with 40,000 or more customers to generate or purchase a percentage of their electricity from renewable sources. This will be achieved according to the following schedule:
3% from 2007 through 2010
6% from 2011 through 2014 and
10% by 2015 and thereafter.
Furthermore, 4% of the energy from each year must come from solar and half of that must come from solar systems located on-site. Besides solar, other options are wind, geothermal, biomass (through the burning of plants, landfill gas, animal wastes), small hydroelectric and hydrogen fuel cells.
Additionally, each kWh of renewable electricity generated within Colorado will be counted as 1.15 kWh in an effort to encourage that renewable energy be generated within the state.
Included in the initiative is a required rebate program. In other words, utility customers installing solar electric generation equipment on their property may earn a rebate for excess annual use sold to the utility.
To read all the details of the Renewable Energy Requirement in an article by DSIRE (Database of State Incentives for Renewable Energy) click here.
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